Hi All…
Ok, I am new to this site and I am totally new to the investment property part of life…..
I am very interested in buying an apartment to get me started as my one goal in life is to have at least 2 investment properties..
I am 22 & currently on $51k a year and my car loan will be paid off within the next 6 months so I will be debt free. I live at home and I am planning to have the deposit for this by the start of next year.
I am looking into buying an apartment in the city area (Melbourne) between 120k – 150k and just want to start out small and rent it out.
I would preferrably be looking into buying an apartment that already has a tenant in place as I have no plans to live in it at this stage and this would purely be for investment purposes…I have no idea how it all works and just wanting to get a few opinions I guess?! [blush2]
I am aware that I would not get the First Home Owners Grant as I wouldnt be living in it, but when I want to buy a house with my partner to live in, would I still get the First Home Owners grant then?
I have heard a few people mention Capital Gain…..is this when the tenant is paying the rent, but you pay the difference that is left to make up the repayment and you can claim this back on tax? how does this all work..
I understand I still have alot of reading up on this to do and alot of people to speak to….just wanting to get some opinions on whether this is a good way to start off? Or should I be looking into buying a place with my partner and then trying to buy investments from there?
Can anyone also suggest some good ways or good books to find out more information to help me out?
Thanks guys..
Lausy [biggrin]
Lausy,
I am located in Sydney, so I’m not sure if the rules that apply are the same, but here if you get the first home buyers grant, you have to move in within the first 12 months, for a minimum period of 6 months. When I bought my house, I put tenants in for the first 6 months, then I moved in it for 6 months, which was pretty tough without the rent to help pay the mortgage, but as soon as those 6 months were up, I moved back in with the parents for a while and put a tenant straight back in it again.
My position has improved considerably with a new job and I now live with my partner, but whilst it was tough in those early days for the 6 months I had to live in it, it was worth it for the first home buyers grant and stamp duty exemption – and would definitely be worth getting into the market now before it starts to rise again.
Cheers
If you can live at home for free then you should do it.
Not sure why the 6 months were ‘tough times’, that $7,000 is $270 per week for 6 months! There is basically nothing to loose here and everything to gain. A $140,000 unit will defiantly not drop in value.
Technically if you are being assisted by your family in the purchase, or they are providing you with assistance for living expenses (which would include you living at home) then you are not elligable for the grant. Most people just flat out lie, but again this varies from state to state.Thanks for your responses guys…
So I know I wont get the First Home Buyers grant for the unit which will be an Investment property…I will be living at home still, but when I decide to buy a house and move out into it (aswell as continue to pay for the Investment unit), will I get the Home Buyers grant for the house Im moving into? Since I will actually be living in it and I hadn’t received it for the Investment property?
Hope that makes sense! [blink][confused2]
Lausy [exhappy]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
